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Old 11-23-2009, 12:40 AM
 
5 posts, read 93,667 times
Reputation: 14

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Folks,
With approximately just 2 weeks to go before Closing date(exact date would be determined this week---12/4 or 12/6 was reported), my company decided to layoff a number of individuals, of which I was one. I am officially off the books (1 week severance) and reported the info to the mortgage broker on 11/ 20, just after it happened. The final papers were going to the bank today (11/23) - (very high credit score) and now the concern is if the Banks will actually make the call. If they do and learn the bad news, is that it for me and the new house? Even with a very high credit rating? My wife earns a very good living too, but is not on the loan due to poor credit. Between her salary and my confidence in obtaining a new job, I am not worried about making the payments. Anybody have any thoughts as to how (outside of an H/R person lying for us) we could still make this sale happen?

Thanks!
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Old 11-23-2009, 07:02 AM
 
Location: Chicago
2,883 posts, read 4,032,036 times
Reputation: 2745
I am a mortgage processor at a broker and most of the lenders we work with do a last minute verification of mortgage as in, within 48 hours or so of your closing. It's too bad that your wife's credit is bad. How bad is it? scores in the 500's? 600's? The one deal I had where the borrower had been laid off, the wife made enough to qualify on her own. He'd been laid off 2 or 3 weeks prior, but I didn't find out until the day before. He spent a long time being totally stressed out about the lying. They were very lucky that the lender we were working with was accomodating enough to get the loan re-underwritten in 1 day. I would get your loan officer exploring other options. You say you've already told the broker about your layoff, they really should not be presenting you to the lender as employed when you're not. Sorry that I don't have better advice for you.
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Old 11-24-2009, 03:05 PM
 
2 posts, read 23,396 times
Reputation: 13
sorry to disappoint you.
They will call your company 3 days before the closing.. They have done it twice for me (!)..
you best chances are to find the job ASAP with not less income.. this is the only advice I have for you in this situation..

Sorry to hear that though (your being laid off.. ).. that just so unfortunate..
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Old 11-25-2009, 06:33 PM
 
5 posts, read 93,667 times
Reputation: 14
Hi---My wife's credit rating is around 570. Her employment situation is strong --10 years straight, now making 90k per year. Do you think we can work with the lender and still make this happen?
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Old 11-26-2009, 06:33 AM
 
Location: Chicago
2,883 posts, read 4,032,036 times
Reputation: 2745
All the big banks follow the Fannie Mae and Freddie Mac guidelines and that credit score definitely places you in the subprime category which does not follow Freddie and Fannie guidelines. I unfortunately don't have much experience with that. A lot of the lenders that specialized in those loans have gone under. I've been processing loans since '97 and all the smart processors knew that there would eventually be a fallout - I had no idea it would be as disastrous as it is, but the guys running those companies making millions had to have known that what they were doing was unsustainable. I don't have a high opinion of that segment of the market, I think they take advantage of people. OK, done with my rant - I could go on and on! You would end up with a significantly higher interest rate for sure. If you decide to go forward, be aware that those types of loans sometimes have prepayment penalties unless you keep the loan for a predetermined amount of time, say 3 years or so. Again, my experience really isn't with that part of the market. An option to consider is finding a local bank that hangs onto their loans. If they are servicing your loan they would have more leeway. Her strong employment history and good income may help balance out her credit scores a bit. Good luck, let me know how things turn out.
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Old 11-30-2009, 10:14 PM
 
5 posts, read 93,667 times
Reputation: 14
Thank you knitgirl--very helpful!
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Old 12-01-2009, 04:15 AM
 
1,879 posts, read 4,399,078 times
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Good Luck!
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Old 12-01-2009, 10:36 PM
 
5 posts, read 93,667 times
Reputation: 14
Thank you!
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Old 12-02-2009, 08:30 AM
 
Location: Chicago
2,883 posts, read 4,032,036 times
Reputation: 2745
You're welcome. I hope whatever you end up deciding is best for you works out.
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Old 12-28-2009, 07:05 PM
 
5 posts, read 93,667 times
Reputation: 14
Hi---Mortgage Broker has sent me an e-mail that indicates the 'credit supplements" were sent to the bank. Can anybody tell me more about a credit supplement? What is it--what does it do for us? Thanks
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